Monday 15 February 2021

#Sharjah's UAB blames NMC exposure, 'legacy issues' for $182mln loss | ZAWYA MENA Edition

Sharjah's UAB blames NMC exposure, 'legacy issues' for $182mln loss | ZAWYA MENA Edition

United Arab Bank (UAB) has blamed its exposure to NMC, as well as some legacy issues and the COVID-19 pandemic for its recent losses, which widened in 2020.

The bank reported a net loss of 667.3 million dirhams ($182 million) for 2020, after a loss of 470.7 million dirhams in 2019.

In a statement to the Abu Dhabi Securities Exchange (ADX), UAB said last year’s results were “predominantly driven by higher impairment charges due to the bank’s legacy issues”.

“[This was] further exacerbated by the challenging operating environment driven by COVID-19 and the low interest rate environment, as well as its exposure to NMC and its associated accounts,” UAB said.

UAB’s revenue dropped from 544.7 million dirhams in 2019 to 402.8 million dirhams in 2020.

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